The following information applies to the questions displayed below] Movelt Corpo
ID: 2410731 • Letter: T
Question
The following information applies to the questions displayed below] Movelt Corporation is the world's leading express-distribution company. In addition to the world's largest fleet of all-cargo alrcraft, the company has more than 54,000 ground vehicles that plck up and delilver packages. Assume that Movelt sold a delivery truck for $28,000. Movelt had originally purchased the truck for $47.000 and had recorded depreciation for three years. 11.00 points 4. Prepare the journal entry to record the disposal of the truck, assuming that Accumulated Depreciation was (a) 519,000, (b) $15,000, and (c) $23,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list 1 Record the sale of the truck that has an accumulated depreciation balance of $19,000 at the time of disposal ance of 2 Record the sale of the truck that has an accumulated depreciation balance of $15,000 at the time of disposal 3 Record the sale of the truck that has an accumulated depreciation balance of $23,000 at the time of disposal Credit Note:journal entry has been entered Record entry Clear entry View general journalExplanation / Answer
1. Acumulated depn is 19000 , journal entry will be made :
Depreciation Reserve a/c DR 19000
Bank a/c DR 28000
To Asset (Truck) CR 47000
2. Accumulated Depn 15000, journal entry will be made :
Depreciation Reserve DR 15000
Profit & Loss a/c DR 4000
Bank A/c DR 28000
TO Asset (Truck) CR 47000
3. Accumulated Depn 23000, journal entry will be :
Depreciation Reserve a/c DR 23000
Bank A/c DR 28000
To Asset (Truck) CR 47000
Profit & Loss A/c CR 4000
Note : Profit / Loss are capital loss or gains and reflected in P&L a/c only. For operational purpose it is not consideed,
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